Commodity & Stock Market Trading Methods
Gann Global Financial participates in bull and bear market legs up and legs down, hopefully in favor of the trend. Our Market Forecasting Services include;
- Stock Market Trading
- Commodity Market Trading
As with any commodity and stock market trader we are not in the markets all the time.
There are always ebbs and flows. Sometimes our commodity and stock market trading methods allow us to do things right and sometimes we do things wrong. It’s just a part of speculation where there are a series of winners and losers.
In Speculation Survival is Paramount
Our strategy is “long pull trading” where we can take some losses, sometimes more losses than profits and still make money. By letting profits run, the multiples that we make in profits are usually greater than what we lose in losses (since we cut losses short).
In other words, our commodity and stock market trading system is to let profits run and cut losses short so that we always have exit points when we make trade recommendations (other than the options, which have a safety net of premiums that are paid for options).
Trying to get rich within a year with commodity and stock market trading can be very problematic. Our recommendation is to extend your time horizons and think in terms of 5 years, minimum…where do you want to be with your commodity and stock market trading in 5 years?
Regardless of the size of your account, the main goal of course is to invest wisely. Most seasoned investors and market traders risk less than 2% on any given trade. A 2.5% threshold will result in success, but understand that you must be able to sustain a series of losses and still have your capital intact.
Return on Investment Goals
Ideally, we shoot for a 20% to 40% annual return on investment. Last year (2009), during the second worst market in history (behind the Great Depression) we still managed a respectable 17% annual return; in exceptional years returns have been as high as an 80%!
UNDERSTANDING TRADING ORDERS
The following will help you understand the commodity and stock market trading orders we use for entering and exiting markets at major turning points
BUY STOP ORDERS
A buy stop is buying on strength at a price above where the market is trading. When a buy stop is elected (price is hit) this becomes a market order to buy.
Our commodity and stock market trading system uses buy stop orders to;
- Initiate long positions on strength
- Exit short positions we are holding on strength (protective buy stops if we’re short the market)
Once we give buy stop orders, they are good until specific instructions are given to the contrary. Also, buy stop orders are to be worked in the PIT and ELECTRONIC sessions unless otherwise specified. Many times we do specify (just the PIT session or just the evening ELECTRONIC session).
SELL STOP ORDERS
A sell stop is selling on weakness at a price beneath where the market is trading. When a sell stop is elected (price is hit) this becomes a market order to sell.
Our commodity and stock market trading system uses sell stop orders to;
- Initiate short positions on weakness
- Exit long positions we are holding on weakness
MARKET ORDERS & LIMIT ORDERS
Market Orders
Buy or sell orders for immediate execution at whatever price the market is trading (relatively infrequent).
Limit Order Buy
Buying on weakness at a price beneath where the market is trading. The order must be filled at or beneath the limit price. (At times we use limit order buying to take profits on short positions.)
Limit Order Sell
Selling on strength at a price above where the market is trading. The order must be filled at or above the limit price. (At times we use this order to take profits on long positions.)
CONTINGENCY ORDERS
Contingency Orders (utilizing the “if…then” criteria) are the typical means by which we enter and exit positions in commodity and stock market trading.
ENTERING LONG POSITIONS:
Trade Initiation Example – On a decline (if the market is) beneath price X (contingency), we would enter long positions on a rally to price Y (Action).
Trade Management – If filled, place sell stops the recommended number of points beneath whatever low was established after breaking X (Action). Unless stated otherwise, this can be entered as a “Good until Cancelled” order, unless instructed otherwise.
ENTERING SHORT POSITIONS:
Trade Initiation Example – On a rally over price X (Contingency), enter short positions on a decline to price Y (Action).
Trade Management – If filled, place buy stops the recommended number of points above whatever the high was established after exceeding X (Action).
Learn More About Our Commodity & Stock Market Trading Methods
For more information about our Market Forecasting Services or to learn more about our commodity and stock market methods, please Call Toll Free 1 (800) 545-9331 (International 310-915-7500)
Complete Forecasting Package (Financial & Commodity Markets)
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